France Gas Major to Merge With Suez SA

French Prime Minister Dominique de Villepin on Saturday announced plans for a merger between energy and utilities company Suez SA and Gaz de France.

Villepin said that Suez and GDF had been discussing a deal for months to bring their "close and complementary" activities together in power production and distribution.

"Given the strategic importance of energy, the fusion of Gaz deFrance and Suez seems today to be the most appropriate path," the prime minister said.

He gave no details on which entity would absorb which to form the new company, and did not mention the sensitive issue of privatization.

The merger will give France a second important utility company next de Electricite de France, Villepin said.